30th Sep 2016 07:33
LONDON (Alliance News) - PCG Entertainment PLC on Friday reported a narrowed pretax loss in the first half of 2016 thanks to strong growth in revenue, but PCG fell short of making a profit as it booked costs relating to a dispute with a supplier.
The Asia-Pacific online gaming and media company said its pretax loss in the six months to the end of June narrowed to USD745,766 from USD2.5 million in the first half of 2015, as revenue multiplied to USD8.6 million from USD745,220.
Administrative expenses increased to USD4.3 million from USD1.4 million, however, keeping PCG in the red for the interim period. The leap in expenses is almost entirely due to a USD2.2 million provision against receivables of Center Point Development Corp, which PCG bought in 2015.
Those expenses related to a dispute with a unnamed supplier over a debt repayment due to be paid to the supplier by Kolarmy Technology Inc.
Kolarmy is the former major shareholder of CPDC. The acquisition agreement between PCG and CPDC provided that CPDC's debtor, creditor and cash balances at that date would remain with Kolarmy post-acquisition except for USD69,100 in cash and creditors of USD19,100.
In addition, PCG, Kolarmy and CPDC's principal supplier entered into an agreement whereby CPDC was released from its obligations in connection with a debt to the supplier of USD2.7 million and all the supplier's rights against CPDC in respect of the debt were cancelled, as Kolarmy agreed to assume all of the obligations and liabilities owed in connection with the debt.
In May, however, PCG revealed that Kolarmy had not repaid the debt, resulting in a dispute between PCG and the supplier, with the latter since been seeking repayment from PCG.
On Friday, PCG said it continues to work towards an amicable solution with the supplier.
"PCGE expects ongoing revenues from CPDC in the second half of 2016 as the company launches its own games management platform. The board is in continuous talks with potential sports and media projects and will update shareholders as these develop," Chief Executive Nicholas Bryant said in a statement.
Shares in PCG were trading down 1.4% at 0.256 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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